Ever since the inception of FX e-trading, banks have been claiming to provide click and deal systems, where the price streamed to the customer can be traded on by a single click. Unfortunately, these systems have generally not truly delivered. Instead they use a system-generated Request For Quote (RFQ) to simulate the Tradable experience. Hitting the indicative price simply returns the current market rate and doesn’t necessarily honour the rate the client selected. This leaves the customer open to the risk of interim market moves and reality is no different to other less “sophisticated” RFQ systems. The net effect may be negligible in normal conditions, but becomes an increasing risk in volatile markets.
Leveraging considerable investment in its e-commerce infrastructure for other assets classes, JPM is proud to unveil a true FX click and trade system. JPMorgan eXpress (JPEX) offers streaming rates that are truly executable by a single request. Hitting a rate produces an order window which is pre-populated with the default requirements, when this is submitted the request is automatically filled at that rate or better.
Banks have struggled to provide this functionality, as it requires a great deal of confidence in their technical infrastructure and the quality of pricing engine.
To overcome this JPM has:
• invested heavily in infrastructure allowing sub-second updates to the client screen
• intelligent pricing algorithms to ensure the best market rate
• sophisticated monitoring tools ensuring absolute confidence in the offered price at all times
• immediate risk management allowing greater tradable size
JPEX – The Range
Utilising their experience offering to click and trade in the Fixed Income market, JPM have expanded the JPEX product range over the years including:
• Government bonds
• Asset backed securities
• Emerging market debt
• Agency bonds
• Corporate bonds
• Equity warrants
• Foreign Exchange
Clients can trade a specific asset class or across products, allowing them to execute a bond trade and with the click of a tab, complete the FX hedge.
JPEX provides the same look and feel across the asset classes and the same features for the separate elements of the trade cycle.
1- Pre Trade
• Live credit & rates market watch to track volatility by sector and historical chart levels
• Closing prices for portfolio valuations
• Click and trade with auto-acceptance to ensure fast on-line trading
• Outright, spread trading or auto-hedging execution functionalities
• Quote request to allow trading on nominals greater than shown maximum size
• Upload of trade requirements
3- Post Trading
• Straight through processing (STP) – Download trades back into your system
• Printable trade tickets
• Downloadable client trade blotter for reconciliation, trade processing and record of historical trades
FX on JPEX: Core Functionality
• Firm streaming prices for spot and swap transactions
• Price transparency
• Execution either ‘at market’ or ‘no worse than’
• 24×5 eCustomer Care Hotline
• STP – both pre and post trade
• Real-time order blotter (available in spreadsheet form)
• Fully customisable, rate view, blotter, preferences, etc
• State-of-the-art, high-strength encryption ensures the integrity of all JPEX communications
• Real-time audit trail allowing users to monitor every
JPMorgan’s electronic FX trading capabilities combine access to market-leading liquidity, powerful trading tools and integrated STP to streamline the way their clients transact FX. JPEX, like all of JPMorgan’s trading tools, are accessed via the JPMorgan website (www.morganmarkets.com). This website includes award-winning research and analytical tools, trade execution and confirmations across multiple markets, all with single sign-on capability. This site offers entry into the JPMorgan electronic dealing environment where all the existing trading platforms can be accessed. In addition to JPEX; MORCOM eXtra, the Futures & Options etrading site offers pre-trade, execution and post-trade services. eFX provides foreign exchange customers with an RFQ model for spot, forward and swap capabilities. eDepo offers clients live pricing for deposits in multiple currencies. This is a real-time market intelligence tool, which combines centralised data processing with Web-based anywhere, anytime delivery of timely intelligence.
The benefits of on-line trading extend not only to clients, but also to JPMorgan. By transitioning clients to JPEX the FX sales desks have more time to focus on providing clients with a truly value added service customised specifically to their needs. The switch towards developing ways to eliminate the clients’ operational ‘pain points’ and reducing their administrative costs also assists JPMorgan to benefit from an efficient and cost-effective method of transacting a routine, high volume, low margin product. It provides banks with the opportunity to realise significant cost savings and also provides clients with the ability to share in those savings through improved access to pricing. By providing clients with firm streaming rates, clients can check the system to determine the level of a particular currency with the additional comfort of knowing that the price is tradable. Leaving both client and JPMorgan with more time to focus on more complex issues.
JPMorgan prides itself on listening to client requirements and will continue to enhance its platforms in accordance with client demands. Foreign exchange was added to JPEX at the end of 2002. MailXpress (a product that allows clients to continue trading on the telephone, but benefit from the advantage of straight through processing) will be released at the beginning of March. Further new developments will closely follow this.
For further information, please contact:
Tel: +44 20 7742 7851
Tel: +1 212 834 4306
Tel: +81 3 5570 7776
Singapore (Asia exc Japan)
Tel: + 65 882 7819